New Duplex Purchased In Cartersville!

[Tyler Druhot]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Cartersville.

Purchase price: $130,000
Cash invested: $45,000

This duplex was sold with tenants already in place whom have given no indication of leaving, even after a pretty significant rent bump. The property needed a new roof and I initiated a few other updates within the home to ease the burden of the increased rent. It's definitely a property that will require a lot of capital when the turnover happens, but will hopefully cash flow well until then and allow for savings to be reinvested.

What made you interested in investing in this type of deal?

Right now I'm looking for properties within a 45-minute driving radius of my home that offer a minimum of a 10% cash-on-cash return in an area where my wife would feel comfortable visiting. This came on the market with 8 others that all lasted less than 24 hours and I was lucky enough to snag one.

How did you find this deal and how did you negotiate it?

This deal was sent to me by my wonderful friend and agent Christian Driver. The asking price seemed reasonable and met my criteria so when I offered the asking price they accepted.

How did you finance this deal?

This deal was financed with a traditional 25% down bank loan for a rental property.

How did you add value to the deal?

In running the numbers, the tenant's current rent was significantly under market value (by about $300 per side) so it was as easy as sending a 60-day notice. I plan to keep the rent below market value in order to retain the tenants and reduce the burden of turnover.

What was the outcome?

So far, everything has been below budget which is very encouraging. The tenants plan on staying, the amount of repairs has cost less than anticipated, and I plan to hold this property indefinitely.